Credit Union Central of Canada Backs Cutting Small Business Red Tape

A new report that highlights what a Canadian trade group described as the burden and high cost of red tape for small businesses has the support of the Credit Union Central of Canada.

The Canadian Federation of Independent Business recently released its Canada’s Red Tape Report, which outlines a 10-point plan for regulatory reform.

The smallest businesses in Canada (fewer than five employees) pay 45% more per employee ($5,942) to comply with government regulation than their U.S counterparts ($4,084), according to the CFIB. The total cost of regulation to Canadian businesses is $31 billion a year, the group said.

The CFIB said on both sides of the border, business owners said regulatory costs could be reduced by about 30% while upholding the important health and safety objectives of regulation. This would mean a $9 billion yearly stimulus to the Canadian economy, according to the report.

The $149.7 billion Credit Union Central of Canada in Toronto said credit unions are also strong supporters of small business in their local communities and are familiar with the “costly burdens” that regulations create for small business owners.

“Canadian credit unions agree that a strong regulatory environment is important to protecting the savings and financial assets of Canadians. However, it is important that the regulations be clear in their application and tailored appropriately to the circumstances of small financial institutions,” said David Phillips, president/CEO of Canadian Central.

“A small business lens requiring regulators to consider the impact of regulations on small business is a very important perspective to bring to regulation-making so that regulations can be designed to achieve their objectives without imposing excessive burdens on small businesses,” Phillips said.